Industrial software group Aveva (AVV) expects revenue to have grown by 9 per cent in its 2020 financial year, with recurring revenue exceeding the medium-term target of 60 per cent of the total.
However, management flagged that reductions in capital expenditure, predominantly in the oil and gas sector, would be likely to lead to first-half revenue coming-in behind the previous target and reduced gross domestic product (GDP) would impact demand for new licenses.
The group has frozen pay, recruitment and reduced discretionary costs, including travel and physical customer events. It noted that the board would make a decision on its final dividend as part of its full year results announcement, expected in early June.
Still, the software group maintained its medium-term targets on revenue growth, although the progress during the 2021 financial year is likely to be slower.
